easy save

Easy save is a friendly society tax exempt savings policy. The premiums are invested in our unitised With Profits Sub Fund. As it is tax exempt this means that the growth is exempt from tax. In addition to this the lump sum that is paid out at the end is tax free.

This offers a valuable benefit, allowing UK residents aged 16 to 74 to shelter their savings from tax and enjoy a tax free cash lump sum at the end of their chosen term. Remember, inflation will reduce the buying power of the lump sum and affect what can be bought in the future. You should also be aware that the tax treatment of the plan could change in the future.

As well as your ISA allowance, the government allows you a tax-exempt savings allowance when you save with a friendly society.

You can save between £15 and £25 a month or £160-£270 a year for between 10-25 years.

Your money is invested in the Engage Mutual With Profits Sub Fund, which invests in a mix of assets including shares, fixed interest securities, commodities, property, currency, cash and other structured investments. The With Profits Sub Fund may also invest directly in fixed interest securities.

Bonuses are added to your plan and these gradually increase the value of the plan. A final bonus may be added when the plan is cashed in at the end of the premium payment term. You should bear in mind that future bonuses depend on investment performance and are not guaranteed.

If you’ve paid all the premiums due for your tax-exempt saving plan you will then have 28 days after the end of the premium payment term in which to cash in your plan to ensure you get back at least what you have paid in. We will write to you to let you know this date is coming up and what other options might be available to you.

If you cash in your policy outside of the guarantee period you may get back less than you invested.

The easy save plan comes with the extra peace of mind of life cover without the need for a medical. If the worst should happen, and you pass away the plan will pay out a lump sum.

Yes, providing that the total savings amount for friendly society tax exempt savings plans held by you with ourselves or any other friendly society, does not exceed £25 a month or £270 a year.

No, easy save is a regular savings plan and does not accept lump sum payments.

• there is a policy fee of £1 per month for monthly policies or £12 per year for annual policies. This is deducted from premiums before they are invested.

• there is an annual management charge. This is 1.25% of the policy value and is deducted on a weekly basis.

• in year 1, there is a charge of 50% of each premium paid in. This is deducted before premiums are invested. 

• there is a life cover charge which depends on your age, the amount of life cover and the unit value (see ‘Key Features’ in useful docs).

The charges we make may increase. 

No, there are no early closure penalties. However please note:

• if you cash in before one year's premiums have been paid you will not get anything back.

• if, within 10 years, the policy is closed or premiums stop, income tax may be payable if the final value of the policy exceeds the premiums paid

• a Market Value Reduction (MVR) or Surrender Adjustment may be applied to your lump sum on surrender. This would effectively reduce the payout you would receive. For more information please download the With Profits Fund CFPPFM document in useful docs.

• if you cash in your policy during the early years you are unlikely to get back as much as you have paid in.

• It’s also important to be aware that if you close your plan outside of the guarantee period, you could get back less than you paid in.

No, easy save can only be funded by Direct Debit.